Coinbase expects Bitcoin halving to face a challenging period due to seasonally low activity.

The Bitcoin halving event is being closely watched by many crypto traders as a potential catalyst for a surge in prices. However, according to cryptocurrency exchange Coinbase, the timing of the event may pose a challenge. In its market commentary report on April 5, Coinbase stated that the crypto market will need to find another narrative to drive prices higher. The exchange noted that the BTC halving, scheduled for April 20 or 21, will have to compete with the historically weak period for crypto markets and other risk assets. Data from Brave New Coin shows that Bitcoin has typically seen a monthly return of 2.7% from June to September, while the remaining months averaged a return of 19.3%. Coinbase also highlighted that overall crypto volumes have been slowing down as the market searches for its next catalyst. According to CoinMarketCap, the total crypto volume over the past 24 hours was $61.78 billion, a 33.25% decrease from the previous day. However, Coinbase believes that there are indications of new investors entering the crypto market in the near future. CoinStats data shows that Bitcoin’s dominance in the overall crypto market is currently 50.6%. The report suggests that as more investors get involved, those waiting for price declines to invest may find fewer opportunities to buy at lower prices. Coinbase expects dips to be more aggressively bought compared to previous cycles, despite ongoing price volatility. Halving events have historically been associated with price spikes in Bitcoin. Following the previous halving event in May 2020, Bitcoin’s price surged from $8,787 to nearly $69,000 in November 2021. In other news, Coinbase recently won a lawsuit in the United States Court of Appeals for the Second Circuit. The court ruled in favor of Coinbase, confirming that the secondary sales of cryptocurrencies on its platform do not violate the Securities Exchange Act. The plaintiffs accused Coinbase of offering and selling unregistered securities and violating securities laws, but the exchange argued that secondary crypto asset sales did not meet securities transaction criteria.